Effect of Information Service Competence and Contextual Factors on the Effectiveness of Strategic Information Systems Planning in Hospitals

Many hospitals in Taiwan have started to encounter new and fierce competition as a result of the enactment of the National Health Insurance Policy in 1995. Hospitals should strive to use information technology (IT) strategically to improve their competitive advantage and meet the dynamic challenges in this competitive environment. This study adopts the Technology-Organization-Environment framework to understand the effects of contextual factors (e.g., environmental uncertainty and information intensity) and information service competence on the effectiveness of strategic information systems planning (SISP) to improve hospital management efficiency. A field survey was conducted using questionnaires distributed to accredited hospitals that serve patients from different regions/districts and with academic teaching qualifications/capabilities. These hospitals represent approximately a quarter of all hospitals in Taiwan. The findings show that the environmental unpredictability and business competence of IS executives are negatively related to the two SISP constructs: IT participation in the hospital planning and alignment of the IT plan with the comprehensive hospital plan. In addition, the findings demonstrate that information intensity has a significantly positive relation to both aforementioned SISP constructs. Finally, both constructs justify the significant positive correlations with the use of IT in increasing competitive advantages and improving the satisfaction of customers and end users. This research intends to guide the healthcare industry in raising competitive advantages to improve the operational efficiency of hospital management in today's highly digitalized environment.